Sport 🏀 ⛷ costs and taxation

An employer has a right to compensate an employee or a member of the board sports expenses (such as e.g. dance classes, yoga, swimming pool, public sport events etc) in the amount of 100 euros per quarter per person or 400.- per year without paying additional taxes.

Instead of sports, employer can compensate private insurance.

In addition to sports and insurance, there is a possibility to pay for the services of a physiotherapist, speech therapist, psychologist (appropriate certificate needed in theirs case). A complete list of tax-free services is specified in the income tax law (TuMS § 48 lg 5.5).

Important ☝️

✅ All employees should be entitled to benefits, not selectively

✅ accounting must be kept for each employee separately

✅ VAT cannot be deducted

✅ it is important to have an invoice/check for the service used.

If there are many employees in the company, then convenient accounting is provided, for example, by the Stebby system (former Sport ID).

Once a year (by February of the next year), a declaration of such expenses must be submitted to INF 14, Part III. Such costs do not involve additional taxes.

#accounting #taxfreecosts #eresidency